The Galveston Daily News from Galveston, Texas on July 4, 1999 · Page 20
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July 4, 1999

The Galveston Daily News from Galveston, Texas · Page 20

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Galveston, Texas
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Sunday, July 4, 1999
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Page 20
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GALVESTON COUNTY, TEXAS SUNDAY, JULY 4, 1999 DAILY \i\\s B9 Company carves odd niche: High-speed Internet service for apartments The Associated Press IRVING — Many businesses figure apartment dwellers are too young or too poor to own houses, but Matt Hutchins thinks they're a potential gold mine for his high- tech company. Hutchins is the president of I3S, the largest provider of high- speed Internet access to apartments. To be sure, the privately held Irving-based company is the biggest player in a very small and specialized game — it has fewer than 1,000 subscribers. But like other Internet entrepreneurs, Hutchins is convinced the market and his company will grow exponentially. The Irving company is looking for part of the emerging market that it hopes will be overlooked by the two giants that dominate high-speed cable access to houses: At Home and Roadrunner, which is a joint venture between Time Warner and MediaOne. Analysts say there may be some logic to I3S's strategy, but they also suspect the owners may be angling to attract an acquirer. This industry is sort of a classic case of the 90-10 rule, where 90 percent of the market will be served by 10 percent of the players, or, in this case, the top two players," said Shaun Andri- kopoulos, an analyst in San Francisco for Bankers Trust New York. "But that doesn't mean there isn't plenty of opportunity for the smaller players," he said. "And down the road, they become acquisition targets." The strength of At Home and Roadrunner is access to homes. Both are owned by cable companies, giving them a powerful competitive advantage. "They own the customers," Andrikopoulos said. "It's not about technology." In its own pursuit of customers, I3S has negotiated with real estate investment trusts and other companies that own large num- "T his industry is sort of a classic case of the 9010 rule, where 90 percent of the market will be served by 10 percent of the players, or, in this case, the top two players," Shaun Andrikopoulos analyst for Bankers Trust New York bers of apartment complexes. Operating in several markets in Texas and California, the company hopes to reach 3 million apartments by year end, including expanding into New %rk, Boston, Los Angeles and Seattle. While At Home and Roadrunner primarily chase the single- family home market, I3S sells its BroadbandNow! service to apartments because of their computer- friendly demographics. "The people who live in these apartments are young, urban professionals. They have a higher- than-average income and they're almost three times as likely to go online as the rest of the population," Hutchins said. Scott Cleland, an analyst for Legg Mason Precursor Group, said I3S's play for the apartment niche is intriguing — but perhaps its only option. Befitting a company that is filling an unusual niche in the Internet-service market, I3S it- self is an unlikely product of a more traditional business. It was started by brothers Jim and Bo Price, who bought the computer division of Olympia USA — yes, the typewriter company — from Daimler Benz in 1994 and rechristened it I3S, which originally stood for Innovative Integrated Information Services. They stripped away much of the company but kept its engineering group. The new company began as an Internet service provider for business clients, but according to Jim Price, the chairman and chief executive, it hit on the idea that upscale apartment owners would gladly offer tenants high-speed Internet access as a valued new- age amenity. After financing the company's birth themselves, the Prices brought in an investment bank to line up $35 million in private placement. Then they began building a private Internet-pro- sSSSF-"' '^•fs'-Sf'' #«*3f "\- -.' ABEAFUNDI \vantsio ...',:,'Thank you forgiving us the oppominliy to:, . ' pro\W« >tii( with INI liivcsttncru ptogrnni scgifcfl by oiniflcaics. of dciiosliiat a raid of: •'' ; i 100,000.00 ) Certificate Of deposit luued through FDIC Bank £D It not callable For moot information, contact: AhmjiilinTcmiiijju'ylclilliirTWO TEARS AIJRA pi IVniVf"' ^-800-440-4543 ui-nllii Mlnil lU'ixxsIl C.2ri'». At 'V lur «nn;yt:.ii /u3D/> 1 UlMJIlVVJ www.abbatunainB.com Galveston College Summer II Open Registration July 6 & 7 8:30 a.m. - 7:00 p.m. JulyS 8:30 a.m. -1:00 p.m. Classes begin July 12! Call: (409) 763-6551 Visit our website: www.gc.edu Come by: 4015 Avenue Q, Galveston It is the policy of Galveston College to provide equal opportunities without regard to age. race, color, religion, national origin, sex, disability or veteran status. tocol network and hit the road, selling their idea to property owners, including large real estate investment trusts, private cable operators and GTE Media Ventures. "Our strategy has been to partner — we partner with the owner of the property or, in some cases, a local utility," Price said. Price said the 80-employee company is well-financed and debt- free, but added, "We may be looking at a public offering in the near future." It is looking to expand into the office-building and hotel markets, although analysts warned that those markets are already very competitive. Dial-up Internet access, using slower modems, typically 56K and below, was a great introduction to the Internet for many computers users. But with all the applications that require or run better with faster connections, Price and Hutchins are betting that many more apartment dwellers will demand high-speed service. Monthly rates run from $30 for a 64K connection up to $699, with the higher end being for high- speed Tl connections fast enough to accommodate a Web server. Two-thirds of the subscribers pay $49.95 for a 1 megabyte connection, Hutchins said. "Serving the Galveston Bay Ant" TEXAS FIRST BANK Bsaaeaas TEXAS CITY 948-1990 Texas City (281) 538-4483 Kemah Charles T. Doyle Chainnan of the Board TEXAS FIRST BANK is pleased to announce the election of BRYAN STOKES Vice President & Manager Kemah Banking Center EACH INDIVIDUAL ACCOUNT INSURED TO S 100.000 AT EACH BANK FOR A TOTAL OF S400.000 IN INSURANCE.^ TAX FORECLOSURE PROPERTIES FOR SALE ITEM NO. ADDRESS RIGHT OF REDEMPTION EXPIRES MINIMUM PROPERTIES EAST OF 25TH ST. & NORTH OF BROADWAY 260 LOT11.SANMARINOTOWNHOMES EXPIRED PROPERTIES WEST OF 25TH ST. & SOUTH OF BROADWAY 159 1306 AVENUE M EXPIRED 239 LOT E, BLOCK 676, aka 1 16 17TH STREET EXPIRED 271 2015 AVENUE 0 1/2 EXPIRED 277 W 1/2 LOT 6, BLK 11, aka 1107 AVENUE L EXPIRED 2,200 8,100 2,200 12,600 2,800 2718SEALY $18,600 4016 AVENUEN $5,400 2721 AVENUE K $9,000 5014AVE.M1/2 $19,000 PROPERTIES WEST OF 25TH ST. & NORTH OF BROADWAY & 1H45 174 3119SEALY EXPIRED 2.200 183 4027 AVENUE H EXPIRED 4.500 168 2718 S 2728 CHURCH & 520 28th ST. EXPIRED 4.500 193 LOTS, OF THE MARY A. PATRICK S/D EXPIRED 500 194 PART OF LOT B, TRIMBLE 4 LINDSEY S/D EXPIRED 700 195 PART OF LOT 6 4 7, BLOCK 463 -507 43RD ST. EXPIRED 400 199 PARTOFLOTS9S10,BLK278aka3812SEALY EXPIRED 3,100 256 TRACT II & TRACT III, BLK 536 & ADJ. MENARD SRVY EXPIRED 14.400 269 N.E.PTOFLOT9&N41'OFLOT8,BLK343.AKA71343RD EXPIRED 1,300 278 32.12(1. LOT 10, 8LK 327 ska 2712 BALL EXPIRED 2.800 283 W 21.83 ft. OF LOT 6, aka 2807 SEALY EXPIRED 1,900 284 LOTS 1&2, BLK 327 ate 708 2STH STREET EXPIRED 1,900 311 3415 AVENUE H EXPIRED 3.100 313 3624 BALL EXPIRED 2,500 314 614 35TH STREET (TRACT II] EXPIRED 6,300 315 2712 WINNIE EXPIRED 2,500 316 702 27TH STREET EXPIRED 18,000 317 2719 CHURCH EXPIRED 3.200 320 3917 WINNIE EXPIRED 2,500 323 PT LOTS 1 & 2 & N/2 ADJ ALLEY, BK 343 - 712 44TH EXPIRED 700 334 2718SEALY EXPIRED 18,600 334A 806 34TH STREET EXPIRED 8.300 336 W65FTOFLOT6.BLK212aka3213SEALY EXPIRED 8,300 340 701 28TH STREET EXPIRED 10,000 342 3823SEALY EXPIRED 16.000 348 3725 CHURCH (ABST 628, PG 105, PT LOTS 14 2, (1-2) BLK 397EXPIRED 1,600 351 4023 AVENUE I (SEALY) EXPIRED 9.500 352 371 6 WINNIE (FSR) EXPIRED 5,000 356 LOT 6, BLK 387 EXPIRED 5,000 357 W 42.16' OF LOT 3, BLK 388 EXPIRED 5,000 358 LOT 9, BLK 448 EXPIRED 5,000 359 2814 CHURCH (LOT ONLY) 09/15/2000 5,000 360 LOT 12. BLK 448 EXPIRED 5.000 PROPERTIES SOUTH OF BROADWAY, WEST OF 25TH ST. & EAST OF 61 ST. 184 401 6 AVENUE N EXPIRED 5.400 185 2920 AVENUE K EXPIRED 2,200 187 2806 AVENUE M 1/2 (REAR) EXPIRED 1.300 245 4119, 4121, 4123 AND 4127 AVE.L& 1212 42ND ST. EXPIRED 14,800 249 2605 AVENUE M 1/2 (FRONT & REAR) EXPIRED 1,800 257 3921 AVENUE L EXPIRED 1.300 268 N. PT OF LOTS 2 S 3, NW BLK 61 aka 3619 AVENUE 0 EXPIRED 17,900 270 4107 AVENUE M 1/2 EXPIRED 15,000 276 140134THST EXPIRED 2,500 280 LOT 12, BLK 25. DENVER RESURVEY aka 5601 AVE.L EXPIRED 9,000 308 LOT 8, BLK 44, DENVER RESURVEY, aka 5209 AVENUE M EXPIRED 8.100 309 LOT 10. BLK 147 aka 2710 AVENUE K EXPIRED 6,300 312 3716 AVENUE L EXPIRED 7,200 318 3804 AVENUE K EXPIRED 14.400 319 4112 AVENUE M EXPIRED 12,600 322 2721 AVENUE K EXPIRED 9,000 329 PT LOT 276 (274-4) TSL, SEC. 2 EXPIRED 22,500 333 LOT 10, SW BLK 0/19 (vacant lot adjacent 4006 Ave.N) EXPIRED 7,600 337 WPTLOT3&SEPTLOT2,NWBLKO/L115 EXPIRED 4,000 339 5014 AVENUE M 1/2 07/21/2000 19,000 341 LOTS 18 THRU 20, BLK 4 DENVER RESURVEY EXPIRED 11,800 343 5116 AVENUE M 1/2 (REAR) EXPIRED 7,000 344 5110 AVENUE M 1/2 (FRONT) EXPIRED 10.700 353 1212 29TH STREET EXPIRED 1,800 355 1807 29TH STREET EXPIRED 29,000 361 1516 36TH STREET EXPIRED 3.600 362 2213 37TH STREET EXPIRED 5.000 PROPERTIES WEST OF 61ST., SOUTH OF BROADWAY & IH 45 TO 103RD ST. 291 mCI10.PTDFLOT131(131-1),T&LSURVEY,SEC.1(SUBMERGEDLAND) EXPIRED 2,900 PROPERTIES WEST OF 103RD ST. TO SAN LUIS PASS 197 LOT 24, SEC 23, SEA ISLE SUBDIVISION EXPIRED 4,500 198 PART OF LOT 292. SEC. 2, TSL SURVEY EXPIRED 3,600 242 12202 STEWART ROAD EXPIRED 26,100 258 PART OF LOTS 402 & 421, SEC. 1, T & L SURVEY EXPIRED 400 262 PARTOFLOTS293S286,SEC.2,T4LSURVEY EXPIRED 3,600 2660 TRACT 4, SOUTH OF LOTS 34-44. BERMUDA BEACH, SEC. 4 EXPIRED 1.000 266C TRACT 3, SOUTH OF LOTS 16-20, BERMUDA BEACH, SEC. 3 EXPIRED 1,000 266E TRACT 5. SOUTH OF LOTS 20-25. BERMUDA BEACH. SEC. 5 EXPIRED 800 266B TRACT 2, SOUTH OF LOTS 1-10, BERMUDA BEACH, SEC. 2 EXPIRED 1,600 266A TRACT 1, SOUTH OF LOTS 1-11. BERMUDA BEACH, SEC.1 EXPIRED 90G 305 LOT 82, BLK 3, PALM BEACH S/D EXPIRED 1,600 345 TRACT 21, HALLS JONES SURVEY (0.361 ACRES) EXPIRED 120 346 LOTS 54* 56, BAY HARBOR UlRSfD EXPIRED 10.000 347 LOT43,BLK3,TERRAMARBEACH.SEC2 EXPIRED 5.500 350 PT OF LOTS 323 (2), 3284 341, T&L. SEC 2 EXPIRED 8.900 354 LOT 38. BAY HARBOR U.R.&0 EXPIRED 7,200 ' indicates Stmcturefs) included, * indicates property is in historical district, LOT(S) ONLY Mcatss sate of land only. Structures, if any, snail be demolished by the City. Please contact the Purchasing Division to obtain the bid package at City Hall. 823 Rosenberg. Room 302 Bid due by 2:00 P.M.. Friday. July 9,1999.

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